NEW YORK, N.Y., October 25, 2001- EGAR Technology (www.egartech.com), a leading provider of trading and risk management systems and custom application development, today announced that CIBC World Markets, the investment and merchant banking operation of CIBC, has licensed EGAR Dispersion, a volatility dispersion strategy analyzer, which is a tool that highlights investment opportunities when changes occur in the relationship between options on an equity index (such as the Dow Jones Industrial Average) and options on the constituent index members. CIBC World Markets’ Equity Arbitrage Group will employ the new volatility dispersion strategy analyzer.
"We were delighted to learn that EGAR has designed a full-fledged analytical system to perform the functions we need for our new dispersion trading portfolio,” said Sanjay Dasgupta, executive director of the Equity Arbitrage Group at CIBC World Markets. “With EGAR’s new system, we now have a more effective and cost efficient dispersion strategy."
CIBC will use the full version of EGAR Dispersion, which includes risk analysis and position monitoring. EGAR also built a custom stochastic implied volatility analysis system for CIBC. For CIBC’s data, EGAR partnered with data provider IVolatility.com to build a historical database and provide daily updates. A "lite" version of EGAR Dispersion without risk analysis and position monitoring is also available.
"It’s a testimony to EGAR’s abilities that one of the world’s most sophisticated and well respected financial institutions is employing the EGAR technology," said Ravi Jain, President of EGAR Technology.